Post Image
  Artificial Intelligence is taking the world by storm. In less than a decade, we’ve seen this technology mainstreamed, and impressive applications found for it in industries as diverse as finance and content creation. For many tech enthusiasts, it’s been interesting to watch how AI is reshaping Nigerian businesses. And there’s more to come.
Read more about Tech
The subject of change brought on by AI is particularly significant. It’s widely expected that this new revolution will transform society in ways as far-reaching as the internet—perhaps even more profoundly. Economies are already being impacted, with job roles being invented, modified, and erased, and business processes redefined. In this article, we’ll explore some of the ways AI and automation are carving a path into the future for enterprises in Nigeria.

The Market for AI and Automation in Nigeria

Although hard data concerning the use of AI in Nigeria is hard to come by, available figures point to a clear surge in demand and utilization. According to Statista, the Nigerian market for AI is projected to be worth $1.40 billion by 2025. This could more than triple over the next 5 years, reaching $4.64 billion by 2030. A majority of the market for this technology consists of Machine Learning (ML) tools. The rest is made up of AI robotics, Natural Language Processing (NLP), and Autonomous and Censor Technology. One estimate indicates that AI may currently be driving Nigeria’s GDP by 1.72%. By the end of this decade, that could climb to as much as 6.56%. In other words, the country’s economic growth will increasingly rely on how AI is reshaping Nigerian businesses.

The Epicenters of AI-Driven Business Transformation in Nigeria

The emergence of Artificial Intelligence and automation is having its greatest impact on the world of business in the following areas:

Supply Chain Management

Thanks to AI solutions, companies are now better able to predict supply chain disruptions before they happen. These tools are being used in forecasting, demand planning, and the optimization of logistics. Automated storage and retrieval systems have also helped to improve warehouse efficiency. Other benefits accruing from automation within supply chain management include real-time shipment tracking, the optimization of route planning, and the reduction of freight costs via efficient carrier management.
Sign up for the Connect Nigeria daily newsletter

Manufacturing

As more manufacturers in Nigeria automate their operations, they’re unlocking efficiencies that have previously not existed in the sector. Although the initial costs of going route remain steep, the benefits often eventually make the transition worthwhile. Automated systems reduce the frequency of errors in the manufacturing process, and increase overall output. This rise in the quality and quantity of products delivered can power substantial increases in profitability in the long term, other factors held constant.

Talent Recruitment, Training, and Deployment

Companies are starting to seek out potential employees who are savvy with AI tools. They are also training existing staff to use the technology to improve their work. The ability to prompt AI for research, data analysis, and insight mining is a skill for which there is growing demand. Automation is changing how people work as well. Because technologies in this category are tackling repetitive tasks, human workers can devote more of their time and attention to more complex assignments that require greater creativity to manage.

Marketing and Communications

Business communications—whether it’s internal or public-facing—is increasingly being aided by generative AI. Email platforms and grammar enhancement applications are incorporating AI that suggests improvements to language tone and syntax. Marketing teams are utilizing this technology to ideate, draw up campaign plans, create written and visual content, and evaluate the results of marketing efforts. Much of this still has a lot of human input, but AI allows them to be done easier and faster. Consequently, increased productivity along these lines is possible.

Customer Service Delivery

AI chatbots were among the earliest applications of Artificial Intelligence witnessed in Nigeria. Many larger organizations have had these chatbots on their websites for a few years already. These non-human assistants can take on and answer basic questions from customers; more complex or specific ones are referred to as human agents. For instance, over a dozen financial institutions have developed chatbots that engage customers across various platforms, including websites, social media, and messaging apps.

Data Analysis and Insight Generation

Data analysis can be quite challenging, especially when dealing with larger tranches of data. Thankfully, several AI-powered applications take care of this. These bots, assistants, and platforms support number crunching on a massive scale and represent data as easily digestible charts and graphs. They also yield insights within seconds or minutes that would take a team of skilled human workers much longer to derive. Again, this saves a lot of time and effort and expedites informed decision-making.
Register to attend the CN Business Mixer

Final Words

Even a cursory look at the business ecosystem reveals that AI is reshaping Nigerian businesses. We can expect this trend to accelerate and become more visible in the coming years. Questions remain about the impact it will have on the economy—especially employment and inequalities. But the steady transformation of commerce and industry that it is producing is undeniable.
Got something you want to read about on our platform? Contact us: editor@connectnigeria.com
You might also like:
This article was first published on 19th February 2025
Notice: Undefined variable: last_modified in /var/www/html/articles/wp-content/themes/cnhalptem/content-single.php on line 36

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *